Freehold properties are scarce in Covent Garden and range from converted warehouses to period Georgian.
Hidden away are fabulous innovative penthouses with roof terraces and converted period buildings in quaint streets with echoes of the old Covent Garden market, such as Rose and Floral Streets.
There are new developments in Trafalgar Square, Drury Lane, Garrick Street and Henrietta Street overlooking the famous ‘Actors Church’ of St Paul’s. Red brick mansion blocks can be found in pedestrianised streets such as Broad Court while there are inexpensive buys in ex-local authority courtyards such as Martlett Court, Beaumont Buildings and Oldham’s Walk near Covent Garden Station.
The consistently strong rental market is heavily populated in Covent Garden, from celebrities and city businessmen to students, and property is always at a premium. There’s a constant demand for the area because everyone wants to experience this vibrant and popular central hub.
Sunday, May 28, 2006
Buy-To-Let Mortgage Rates
There are more than 200,000 amateur landlords in the UK and although the market has slowed because of rising house prices and interest rates, those with sufficiently large deposits 'typically 20%-25%' can still earn a respectable yield from the rental income.
Deposits generally need to be larger in today?s market otherwise the rent will not usually be sufficient to cover the mortgage interest and satisfy the lender?s requirements.
Investment mortgages used to be 1%-2% more expensive than standard residential deals but since the inception of specialist buy-to-let products the rates have plummeted. The best buy-to-let deals are now cheaper than many ordinary residential loans.
Lenders generally demand that the rental yield being able to cover the mortgage interest, plus approximately 20% as a safety buffer for both you and the lender. However, some lenders have relaxed this criterea and now only insist that the rental income will cover 100% of the mortgage interest, although to qualify you will generally need a larger deposit. Affordability is not worked out on a capital and repayment basis – the sums are done on an interest-only basis. This means that it is up to you whether or not you make any provision to pay off the mortgage capital.
Technically, all you need is a deposit of as little as 15%-25% and, as long as the potential rent is deemed to be sufficient, you can buy your investment property.
However, buying-to-let in London should not be regarded as a short-term bet but should be entered into with a medium to long-term view.
Deposits generally need to be larger in today?s market otherwise the rent will not usually be sufficient to cover the mortgage interest and satisfy the lender?s requirements.
Investment mortgages used to be 1%-2% more expensive than standard residential deals but since the inception of specialist buy-to-let products the rates have plummeted. The best buy-to-let deals are now cheaper than many ordinary residential loans.
Lenders generally demand that the rental yield being able to cover the mortgage interest, plus approximately 20% as a safety buffer for both you and the lender. However, some lenders have relaxed this criterea and now only insist that the rental income will cover 100% of the mortgage interest, although to qualify you will generally need a larger deposit. Affordability is not worked out on a capital and repayment basis – the sums are done on an interest-only basis. This means that it is up to you whether or not you make any provision to pay off the mortgage capital.
Technically, all you need is a deposit of as little as 15%-25% and, as long as the potential rent is deemed to be sufficient, you can buy your investment property.
However, buying-to-let in London should not be regarded as a short-term bet but should be entered into with a medium to long-term view.
London Again: Property Prices Booming
2005 was certainly a year of two halves. January to June was very slow and many in the property industry were not hopeful of a revival. However, before we knew it, all changed in July and the market rallied. It was a trend that ran to the end of the year.
Better still; West Hampstead's housing market has got off to a flying start this year, with property prices posting their biggest jump for 18 months. Some economic commentators had predicted a fall in property prices. But those of us handling the sales of second-hand homes - which do of course make up the vast majority of property stock for sale in the UK - and are nearer to the everyday market than most, felt that the mood was optimistic. This has been confirmed by national building societies and banks that have just reported the biggest monthly price increase since July 2004, at the height of the boom.
Inevitably when there is a quickening of pace in the market there are fewer properties for sale. This is the case now and points to a very active spring with eager competition for the best flats and houses. Already, in many instances recently, Paramount have agreed offers within 48 hours and have even achieved over the asking price.
In London February is city bonus time. This year has a bumper one and certainly triggered a mini property boom in some of our areas.
But big city bonuses will not stimulate the whole market. They never do.
Early in 2005 the doom-mongers were predicting a violent bursting of the property bubble and the market in free-fall. Fortunately they were wrong. The reason is clear. Contrary to the previous market downturns the economy is stable, with low interest rates. Consequently market confidence has remained reasonably high. The downside is that recent price rises have deterred would-be first time buyers who have been forced to rent rather than purchase. It is first time buyers who really drive the market as a whole.
All this has kept the buy-to-let market relatively buoyant and we see no reason in the short to medium term for this to change.
When will first time buyers return in numbers? Simply, when salaries are raised to a point that first-time buyers can enter the market in numbers.
So, in the absence of an economic downturn and a large interest rate rise - or any other unforeseen event that would affect it - we are seeing a confident and steady property market, one that allows reasonable choice and some time for reflection for buyers, and encourages reason and a little patience in sellers. Enjoy it while it lasts.
Better still; West Hampstead's housing market has got off to a flying start this year, with property prices posting their biggest jump for 18 months. Some economic commentators had predicted a fall in property prices. But those of us handling the sales of second-hand homes - which do of course make up the vast majority of property stock for sale in the UK - and are nearer to the everyday market than most, felt that the mood was optimistic. This has been confirmed by national building societies and banks that have just reported the biggest monthly price increase since July 2004, at the height of the boom.
Inevitably when there is a quickening of pace in the market there are fewer properties for sale. This is the case now and points to a very active spring with eager competition for the best flats and houses. Already, in many instances recently, Paramount have agreed offers within 48 hours and have even achieved over the asking price.
In London February is city bonus time. This year has a bumper one and certainly triggered a mini property boom in some of our areas.
But big city bonuses will not stimulate the whole market. They never do.
Early in 2005 the doom-mongers were predicting a violent bursting of the property bubble and the market in free-fall. Fortunately they were wrong. The reason is clear. Contrary to the previous market downturns the economy is stable, with low interest rates. Consequently market confidence has remained reasonably high. The downside is that recent price rises have deterred would-be first time buyers who have been forced to rent rather than purchase. It is first time buyers who really drive the market as a whole.
All this has kept the buy-to-let market relatively buoyant and we see no reason in the short to medium term for this to change.
When will first time buyers return in numbers? Simply, when salaries are raised to a point that first-time buyers can enter the market in numbers.
So, in the absence of an economic downturn and a large interest rate rise - or any other unforeseen event that would affect it - we are seeing a confident and steady property market, one that allows reasonable choice and some time for reflection for buyers, and encourages reason and a little patience in sellers. Enjoy it while it lasts.
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